Investors Cell To Approach Rbi, Sebi

The Investors Grievances Forum will file individual complaint letters of all investors affected in the CRB scam, with the Reserve Bank of India (RBI), the Securities and Exchange Board of India and the Mumbai police. The Forum has also decided to stage a demonstration in front of the RBI office today.

The legal cell of the forum is further contemplating filing a public interest litigation (PIL) in the High Court.

President of the city unit of the Bharatiya Janata Party, Kirit Somaiya, who is also the head of the Investors Grievances Cell, held a stormy meeting with CRB investors yesterday at the Janmabhoomi Hall in Mumbai. At least 350-400 investors attended the meeting.

 

Somaiya estimated the magnitude of the CRB scam at about Rs 1,000 crore. There are small investors from Pune and Nashik as well who have lost their hard-earned money in the fraud. Also, a lot of money has flowed into the pockets of higher officials to ensure that the guilty got away scot-free, he claimed.

Somaiya came down heavily against all the regulatory agencies and the SBI, credit rating agency CARE and the Central government. A fraud of such magnitude could not have taken place without the knowledge of top officials, he said. He was particularly severe on CARE, the rating agency which had accorded A rating to CRB Capital.